Kae Cap­i­tal raises $30 mil­lion for fund fo­cused on lo­cal start-ups

The Pak Banker - - COMPANIES/BOSS -

Kae Cap­i­tal, which in­vests in earlystage com­pa­nies, has raised $30 mil­lion from ex­ist­ing and new in­vestors as part of its se­cond fund. The firm will be rais­ing an ad­di­tional $10 mil­lion soon, said Sasha Mir­chan­dani, founder and man­ag­ing di­rec­tor of Kae Cap­i­tal, on Thurs­day. He de­clined to share the names of the in­vestors.

Kae Cap­i­tal raised its maiden $25 mil­lion fund in March 2012. In­vestors in the first fund in­cluded ven­ture cap­i­tal firms Se­quoia Cap­i­tal, SAIF Part­ners and Omid­yar Net­work; three global fund-of­funds-Ax­iom, Squadron Cap­i­tal and Mor­gan Creek Cap­i­tal Man­age­ment; and a few high-net-worth in­di­vid­u­als such as Man­ish Ke­jri­wal, man­ag­ing part­ner of Kedaara Cap­i­tal, and Deep Kalra, founder and chief ex­ec­u­tive of on­line travel com­pany MakeMyTrip Ltd.

From the first fund, Kae has in­vested in nearly 25 start-ups, in­clud­ing on­line fash­ion por­tal Myn­tra (ac­quired by on­line mar­ket­place Flip­kart in 2014), mo­bile ad­ver­tise­ment tech­nol­ogy InMobi and US-based data an­a­lyt­ics com­pany Frac­tal An­a­lyt­ics. The se­cond fund has al­ready in­vested in at least five start-ups.

The firm had ex­hausted its pre­vi­ous fund in mid-2015 and has since been ware­hous­ing its in­vest­ments. Ware­hous­ing is a process that al­lows ven­ture cap­i­tal firms to in­vest in start-ups even when they have ex­hausted their funds or are yet to raise a new fund.

Ben­galuru- based Nudgespot Tech­nolo­gies Pvt. Ltd raised $650,000 in a round led by Kae Cap­i­tal. Kae will in­vest the pro­ceeds of the se­cond fund in the next three-five years and plans to dou­ble the size of its in­vest­ments. It has so far been in­vest­ing a ticket size of $500,000 in early-stage start-ups, which will now be in­creased to $1 mil­lion. The fol­low- on ticket size also will be in­creased from $2.5 mil­lion to $4 mil­lion go­ing for­ward. At a point of time when most ven­ture cap­i­tal firms are look­ing at tech­nol­ogy start-ups, Kae will be al­lo­cat­ing 10% of the over­all fund to cater to non-tech start-ups such as fast-mov­ing con­sumer goods com­pa­nies and man­u­fac­tur­ing start-ups.

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